The Westminster Government has thrown its weight behind the planned review of Holyrood�s powers, with a promise to clarify the funding of the Scottish Parliament.

The Westminster Government has thrown its weight behind the planned review of Holyrood's powers, with a promise to clarify the funding of the Scottish Parliament.

The significant shift of position comes after weeks of the UK Government's refusal to endorse the approach to the Constitutional Commission being set up by Labour, Conservative and LibDem leaders at both Holyrood and Westminster.

Although Des Browne, the Secretary of State for Scotland, attended two meetings with five other leaders to discuss the review, it was stressed he did so as leader of Scottish Labour MPs and, unusually, not as a government minister.

Now the Labour Government is willing to welcome the review for which a majority of MSPs voted in the Scottish Parliament in December, and on which Wendy Alexander has staked her Labour leadership at Holyrood.

Whitehall has indicated it is willing to contribute resources to the commission's work without which it could fail to get started.

It was also announced that Chancellor Alistair Darling is to publish a paper on the funding of devolved administrations, including Scotland, Wales and Northern Ireland.

As both the Chancellor and Prime Minister represent Scottish constituencies, they have been under pressure from the English-based media and Conservative MPs over the impression that Scotland gets more than its fair share of public spending.

Mr Darling will publish "a factual paper on the funding mechanisms for the devolved administrations", to help inform the commission's review of the 1998 Scotland Act, under which the Scottish Parliament was set up.

This will allow ministers at Westminster to counter the attack on Scottish funding, making it clear half the funding of Scottish services, including pensions and welfare, does not go through Holyrood, while the funding formula for Holyrood leads to a block grant from which MSPs have to make spending choices.

There is no indication yet that the funding formula will be reformed, though that would be a likely consequence of the commission's work.

The announcement was made in answer to a House of Lords question. Lord Hunt of Kings Heath, a UK Justice Department minister, said: "The government welcome the Scottish Parliament's support in this aim and welcome the review."

The response at Westminster helps the troubled leadership of Wendy Alexander in trying to make progress and take reluctant party colleagues with her.

The UK Government's broader constitutional review, which will lead to a white paper scheduled for publication next month, includes discussion of a British statement of values, a bill of rights and increasing the powers of Parliament on treaty making and declarations of war.

Gordon Brown's administration has also yet to declare its intentions for further House of Lords reform.

The constitutional commission is distinct from the "national conversation on choosing Scotland's future" started last August by the SNP-led Government and aimed towards a referendum on independence in 2010.